01/11/2007
PENSION ADVISORY COMMITTEE MEETING MINUTES
CITY OF CLEARWATER
January 11, 2007
Present: Nathan Hightower Chair
Tom Jensen Vice-Chair
John Schmalzbauer Committee Member
Carlen Petersen Committee Member/Councilmember
John Doran Committee Member/Councilmember
Stephen Sarnoff Committee Member – arrived 9:03 p.m.
J.B. Johnson Committee Member/Interim Councilmember
Also Present: Joe Roseto Human Resources Director
Patricia O. Sullivan Board Reporter
The Chair called the meeting to order at 9:00 a.m. at City Hall.
To provide continuity for research, items are in agenda order although not
necessarily discussed in that order.
2 - Approval of Minutes
Member Doran moved to approve the minutes of the regular meeting of December 14,
motion
2006, as submitted in written summation to each board member. The was duly
carried
seconded and unanimously.
4 – Employees to be Heard – None.
5 – Action Items:
a. Review and Action on Employee Requests for Regular Pensions:
1. Larry D. Dean, Fire
2. James Peppe, Fire
Member Jensen moved to approve the requests for regular pensions for Larry D. Dean
motioncarried
and James Peppe. The was duly seconded and unanimously.
b. Approval of New Hires as Plan Members:
Member Schmalzbauer moved to accept the following employees into membership in
the Pension Plan:
Pension Eligible
Name, Job. Class, & Dept./Div. Hire Date Date
Bruno Baermann, Police Officer/Police 11/27/06 11/27/06
Barron Harris, Parks Service Technician I/Parks & Recreation 10/30/06 10/30/06
Cassandra Hampton, Police Comm. Operator Trainee/Police 11/13/06 11/13/06
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Donald Melone, Survey Assistant I/Engineering 12/11/06 12/11/06
Robert Sullivan, Survey Assistant I/Engineering 12/11/06 12/11/06
Evan Pedone, Parking Enforcement Specialist/Engineering 12/11/06 12/11/06
Loyd Simmons, Recreation Programmer/Parks & Recreation 12/11/06 12/11/06
motioncarried
The was duly seconded and unanimously.
5 – Pending/New Business
a. Vince Kirkland - Job-connected Disability Hearing
Human Resources Director Joe Roseto reported that Vince Kirkland’s attorney had
requested postponing this hearing until February.
Member Johnson moved to reschedule the job-connected disability hearing for Vince
motion carried
Kirkland to February 8, 2007. The was duly seconded and unanimously.
b) Proposed Pension Plan Assumption Changes
Assistant Finance Director Jay Ravins reviewed proposed changes. The Plan's actuary,
PriceWaterhouseCoopers LLP, has recommended changes to the Plan's mortality, withdrawal,
and retirement assumptions that are used to calculate the Plan's liability and related contribution
requirements. The recommended changes were the result of a comprehensive review of the
Plan's assumptions relative to the implementation of a new reporting requirement for the City's
liability for Other Post Employment Benefits (OPEB). A comprehensive set of assumptions for
calculation of the OPEB liability will be presented to the City Council for approval at a later date.
The actuary has indicated that the change to the mortality assumption, using the RP
2000 Blended Healthy Mortality Table versus the current 1994 Group Annuity Reserving Table,
should result in an increase to the Plan's liability. However, this increase is expected by the
actuary to be more than offset by the favorable changes in the withdrawal and retirement
assumptions, resulting in a net decrease in the Plan's actuarial liability as the result of these
three assumption changes.
The actuary has recommended that these changes be implemented to more fairly and
accurately estimate the Plan's liabilities and required contribution rates. Staff recommends
approval.
In response to a question, Mr. Ravins said a new reporting requirement had triggered
the study. While the law does not mandate the changes, the auditor recommended their
implementation. In response to a suggestion that the Plan could lower its liability by retaining
the current mortality table, Mr. Ravins said people are living longer and the Plan eventually
would have to cover the deferred costs. The benefit calculation and value of the benefit will not
change. Ms. Simmons reviewed the benefit calculation and alternative method of benefits.
The new mortality table would impact the alternative methods of benefits, which are
calculated to be actuary equivalents. In response to a request, staff will provide examples, once
they are available. The PAC is responsible for fiduciary oversight of the plan. Concern was
expressed that alternative method of benefits may decrease monthly retiree payments.
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. Member Jensen moved to recommend approval of changes to the Mortality, Withdrawal,
and Retirement Assumptions for the Employees' Pension Plan, per attached, as recommended
by the plan's actuary, PriceWaterhouseCoopers LLP. The motion was duly seconded.
Members Jensen, Schmalzbauer, Petersen, Doran, Johnson, and Chair Hightower voted "Aye";
Member Sarnoff voted "Nay." Motion carried.
6 - Director's Report
Mr. Roseto reported the City Attorney office had opined that only the City Council can
meet out of the Sunshine under specific circumstances.
7 - Committee Members to be Heard
Member Jensen reported that a FPPTA (Florida Public Pension Trustees Association)
conference is scheduled this month.
Chair Hiqhtower recognized the University of Florida National Championship win in
football and complimented presentations by Mr. Roseto and other department directors before
the Budget Task Force.
Members wished everyone a Happy New Year.
Chair
Pension Advisory Committee
8 - Adiournment
.
The meeting adjourned at 9:33 a.m.
.
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